How to Claim Your Colorado Moving Expense on Next Year’s Taxes
September 7, 2016
Moving can be costly. Both financially and physically! A move is a great time investment that hopefully pays off with the love for your new home. Did you know that you can deduct parts of your Colorado moving expenses on your taxes? Learn about the different scenarios that may qualify you and be sure to take advantage of them!
Do You Qualify? In order to qualify for moving tax deduction, you have to be moving for a change in your work. You can be an employee at a company or self-employed. Now, you do not necessarily have to get a new job and move based on that. It could be to work in a new area. Usually you will want to try to claim the move the year that you moved. This is something to work with your tax specialist on to ensure you are deducting at the right time. In some marriage cases, one spouse may stay in a city until they can sell a home, while the other moves. This is another area that can be worked on with a tax specialist. There are still situations here that will allow tax deductions to be taken advantage of in this instance.
Distance and Time Tests: So you are moving—great! You are one step closer to being able to deduct your move. Your next test to see if you can claim it on your taxes is the “Distance and Time” test. For distance, you must be moving at least 50 miles away from your old residence and workplace. Next, time will have to be factored in. In order to qualify for this deduction, you must be a full-time employee (whether it is with one company or full-time split between two companies). You must work at a company for at least 39 weeks. Now, if you are self-employed, it is different. In order to be able to claim a move, you must have worked at least 78 weeks after the first 24 months from your moved.
What Can Be Deducted: If you are moving for employment and pass the “Distance and Time” tests, then you qualify for moving tax deductions! You will be able to deduct truck fees (whether you rented on your own or hired a mover), gas, packing supplies, insurance, assistance, storage and traveling expenses. Food deductions are off-limits and so is anything an employer may have reimbursed. You can deduct lodging if you were out of a place to sleep for a night during the move because furniture was with a moving company. Learn more about the various dos and don’ts of moving deduction in the Forbes’ article “Moving? Don’t Forget the Tax Deduction.”
When it comes to Colorado moving and traveling far to a new home, Eden’s Moving Services can help! We are experts with long distance moving and will keep your valuables safe. We can take care of every step of the moving process to packing and loading to allow you to focus on other important things. A stress-free move is a great one! Learn about our long distance residential moving services and give us a call at 877-887-8248 to get a free quote. Then don’t forget to claim your move if you qualify!